Compare · New Zealand vs United States
New Zealand vs United States for Australians leaving home
New Zealand:Worldwide taxAU tax treatyUnited States:Worldwide taxAU tax treaty
New Zealand and United States run the same headline regime, worldwide tax, so the decision turns on the details underneath: what each one does to capital gains, dividends and the Australian income you keep.
Both have a tax treaty with Australia, so either way you get a tie-breaker if the ATO contests your departure, and capped withholding (15%/10% vs 15%/10% on unfranked dividends/interest).
New Zealand is the cheaper place to live day to day, roughly 90% of Sydney's basket against United States's 115% (indicative, ex-rent), which can outweigh a thinner tax saving over a full household budget.
Personalise this, enter your numbers once and every figure below becomes yours: “your estimated income tax: $14,200”, not “0, 22%”. Open the Country Comparison tool →
| 2 destinations | New ZealandNew Zealand | United StatesUnited States |
|---|---|---|
| Tax | ||
| Regime | worldwide, taxes worldwide income | worldwide, taxes worldwide income |
| Income tax on salary | Progressive 10.5, 39%. No tax-free threshold at all (the first dollar is taxed) but effective rates at middle incomes land close to Australia's. | Federal 10, 37% plus state tax (0, 13.3%) plus FICA (7.65% employee side). A US$150k salary in California pays roughly 30%+ combined; in Texas closer to 24%. |
| Capital gains | No general CGT: long-term share gains untaxed. Exceptions: traders, property inside the bright-line window, and the FIF deemed-return regime on non-ASX foreign shares over NZ$50k. (0% typical) | Long-term (12+ months) federal rate 0/15/20% plus 3.8% NIIT above ~US$200k income; short-term gains at full ordinary rates. States tax gains as ordinary income, California adds up to 13.3%. (15% typical) |
| Dividends | Dividends taxed at marginal rates. NZ imputation works like franking; Australian franking credits are NOT usable in NZ, a long-standing trans-Tasman sore point. | Qualified dividends at 15% (20% top). Australian franking credits are invisible to the IRS, franked dividends are just taxable income with a credit for the AU WHT. |
| Interest | Taxed locally around 33% | Taxed locally around 24% |
| Crypto | No CGT does not mean crypto-free: IRD treats most crypto as bought with intent to sell, making gains taxable income at marginal rates. The onus of proving otherwise is on you. | Crypto is property: every disposal (including spending and swaps) is a capital gains event, short-term gains at ordinary rates, long-term at 0/15/20%. Broker reporting to the IRS is now systematic. |
| Australia tax treaty | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available |
| Social security | No social security tax; ACC earner levy (~1.6%) applies to employment income. KiwiSaver is opt-in for migrants. | FICA (6.2% social security capped + 1.45% Medicare uncapped) applies to US employment; a totalisation agreement with Australia prevents double super/social security in most postings. |
| Visa | ||
| Best pathways |
|
|
| Visa ease | 10/10 | 6/10 |
| Family on visas | Dependants covered on main pathways | Dependants covered on main pathways |
| Fastest timeline | ~0 months on the quickest pathway | ~2 months on the quickest pathway |
| Money | ||
| Rent (family home, monthly) | $3,300/mo | $7,500/mo |
| Rent (couple, monthly) | $2,300/mo | $4,500/mo |
| International school (per child/yr) | Free / local system viable | Free / local system viable |
| Health cover (family/yr) | $3,000 | $20,000 |
| Cost of living vs Sydney | 90% of Sydney (ex-rent) | 115% of Sydney (ex-rent) |
| Relocation one-off | ~$12,000 | ~$30,000 |
| Flights home (return, pp) | $500 | $2,000 |
| Life | ||
| Timezone vs AEST | 2h ahead | 18h behind |
| Flight from Sydney | ~3 hours | ~13.5 hours |
| English | 10/10 | 10/10 |
| Safety | 9/10 | 6/10 |
| Healthcare | 8/10 | 8/10 |
| Schooling | 8/10 | 8/10 |
| Climate | Temperate maritime, Auckland is mild and wet; the South Island does real winters. | Continental spread, LA is 20, 28°C and sunny most of the year; pick your city, pick your climate. |
Costs, rates and visa figures are country-module data marked indicative until individually verified; FX and rental markets move constantly.
Honest downsides, side by side
Every destination hub on this site carries its downsides in the open. Here are both lists together, because the right question is rarely “which is better?” and usually “which set of problems would you rather live with?”
New Zealand
- The tax saving is thinner than it looks: no CGT is real, but income rates are Australia-like, there is no tax-free threshold, and salaries are 15, 25% lower for the same role.
- The ATO treats a hop to Auckland with scepticism, same time zone, 3-hour flights, easy return; your "permanent departure" evidence needs to be stronger, not weaker, than for Dubai.
- Auckland housing rivals Sydney for unaffordability, and the cost-of-living basket is not meaningfully cheaper.
- Earthquake and weather-event risk is priced into insurance, and the economy is small, career ceilings arrive quickly outside a few sectors.
United States
- This is a move for career and earnings, not tax, combined federal + state + FICA in a coastal city will roughly match or exceed your Australian rate.
- Healthcare is tied to employment and ruinously expensive without it; a family plan's premiums and deductibles can exceed A$25k/year of exposure.
- The IRS relationship is sticky: green card holders are taxed on worldwide income for life until formal surrender, and FBAR/FATCA reporting on Australian accounts carries brutal penalties for innocent omissions.
- Your superannuation is a US tax problem: no treaty article clearly protects it, and treatment (foreign grantor trust? employee trust?) is unsettled, specialist advice is non-optional.
- Gun violence, litigation culture and the cost of failure (no safety net) are real quality-of-life deductions Americans price in and Australians don't.
Make this comparison yours
The table above shows the general figures. Enter your income and family once and the tax rows become your numbers, “your estimated income tax in Auckland: $14,200”, not a range.